Consumer Goods & Retail: Case StudySABU Schuh-Verbund eG

SABU Schuh-Verbund eG serves approx. 1,200 shoe stores, predominantly in Germany, with combined retail sales of approx. €800 million. The core business of SABU consists of the procurement of goods, wholesale and services (marketing, infrastructure) for the affiliated companies.

The core activities of RSB Retail + Service Bank are central financing functions for the SABU members (volume of over €1 billion) and general retail bank services, also for third parties.

In Autumn 2008, C▪H▪Reynolds was mandated by Intersport to assist in the acquisition of shares in SABU and RSB Bank, a project within the strategic scope of Intersport to broaden their business activities. C▪H▪Reynolds assumed the entire transaction process management and analysis of financial data and planning assumption for decision makers. In addition, potential risks were identified and solutions for dealing with them were implemented in the share purchase agreement.

The transaction was under intense time pressure, combined with a high confidentiality requirement due to a very narrow market. Knowledge of the business model was a decisive criteria to successfully completing this transaction.

Service of C▪H▪Reynolds

Coordination and management of financial, tax and legal due diligence

Elaboration and analysis of strategic valuation considerations

Ongoing discussion of the results with the Board of Intersport

Elaboration and presentation of the due diligence results and of the target companies

Business planning in the supervisory board

Moderation of the contractual negotiation process with all of the involved parties and advisers

Assistance in the renegotiation of decisive aspects in the sales contract